President Goodluck Jonathan on Monday maintained that Nigeria needs about $900 billion to fix her energy sector in the next 30 years.
Speaking during the Nigeria Power Financing Conference at the Banquet Hall of the State House in Abuja, he said that a significant percentage of the fund has to come from the private sector. Jonathan was represented at the conference titled: “Private Sector Financing/Support for the Power Sector and Infrastructure” by Vice President Namadi Sambo.
Stressing that the government alone could not fund the infrastructure development, the President said that the power sector alone requires $10 billion for power generation and distribution towards adding 5,000 megawatts to the national grid.
He called on the power sector operators to do everything possible in order to provide appreciable power supply to Nigerians by June this year.
He said: “Under our national infrastructure master plan, substantial amounts are required for infrastructural development efforts in the next 30 years covering 2014 to 2045.
The energy sector alone needs an infusion of about $900bn during this period. Of this, a significant percentage is expected to come from the private sector. “The power sector alone needs about $10bn for generation and distribution companies in the next few years to enable us add 5,000mw to the national grid. “Similarly, our transmission grid requires an annual investment of about $1.5bn for the next five years to ensure its reliability and stability.
The Transmission Company of Nigeria (TCN) has commenced aggressive implementation of the expansion blueprint by leveraging funds from both the appropriation, financial and multi-lateral institutions.” He went on: “The Federal Government is also undertaking new investments in power as well as renewable energy such as solar, wind and hydro power plants and also in major gas infrastructure. This infusion of resources from other sources will go a long way in fully realising these efforts.
“Besides power, we are also making huge investments to meet our other infrastructural needs including our road networks, telecommunication, railway, water resources, water rails, aviation and so on.” “The government alone cannot fund infrastructural needs in Nigeria. Today’s global economy depends on the active involvement and sustained contribution of all stakeholders, especially the organise private sector. This conference therefore comes at the appropriate time.
The opportunities for foreign direct investments and returns in Nigeria are attractive. “Our economy is growing stronger everyday. I therefore hope that this conference will come up with practicable strategies for the power sector, and that it will devise strategies to unlock the much needed capital for wider infrastructural development.
“I urge the private sector operators to go the extra mile and provide appreciable electricity supply to anxious Nigerians, at least by June this year. I believe this can be done and Nigerians are eagerly waiting for this.”